Shares of JD.com (NASDAQ: JD) were down by more than 4% in pre-market trading on Monday after the Chinese online retailer announced that it was winding down its operations in Indonesia and Thailand.
In Indonesia, the retailer will stop accepting orders from the middle of February and all its services will be stopped by the end of March, while JD Central will cease its operations from March 3 in Thailand.
JD’s customer support service will be available online only until March 15 in Indonesia and till March 30 in Thailand.
The company stated in its email, “JD.com will continue to serve the global markets, including Southeast Asia, through its supply chain infrastructure. We are developing in international markets by focusing on building a cross-border supply chain network with logistics and warehousing at the core.”
JD.com’s foreign operations and new businesses comprised around 2% of its total sales. Late last year, JD Indonesia reduced around 30% of its workforce.
Analysts are bullish on JD stock with a Strong Buy consensus rating based on 10 Buys and one Holds.
